Cryptocurrency News

Dogecoin Price Falls after Getting Mentioned on an SNL Skit by Elon Musk

The meme cryptocurrency has been going around in the crypto circles with an unpromising speed. Investors and traders have been anticipating the upcoming Dogecoin sketch on the popular comedy show Saturday Night Live. Although prior mentions by SpaceX CEO Elon Musk have sent the currency to new heights, the May 8th cable debut of the crypto seems to have misfired. Musk told his Twitter followers beforehand to make their decisions with caution.

However, there were a great number of DOGE hodlers who were hoping for a massive rally after the skit has been aired. The joke cryptocurrency managed to reach a new ATH of $0.7 two hours before the sketch was aired. Analysts think that the synchronized bearish headwinds could have caused this sharp 24.44% drop. The joke coin started to depreciate one hour before the sketch and is currently trending at $0.552, still holding the 4th top rank above XRP.

What has caused DOGE to go down?

Musk said about DOGE that it is going to take over the world and referred to it as an unstoppable financial vehicle during his sketch. Taking note of the DOGE price trend, he claimed that while the meme cryptocurrency started as a joke, it is taking off into the crypto space just as good as any other blockchain token. Sam Trabucco, Alameda Researcher, said on his Twitter profile that the Dogecoin would have a better chance if it is well-placed in the monologue. 

Although the cryptocurrency was added as part of the monologue piece, its price tanked nevertheless. Before the show’s debut, a slew of data makes rounds indicating that investors exchanging Dogecoin for other major cryptocurrencies. The introductory line showed mother Musk asking his son if Dogecoin is her present; Musk replies that it would be. After a few minutes of airing, DOGE went down about 25%. Musk also mentioned Ethereum and Bitcoin in his sketch; however, both of these currencies are following their routine path.

While Dogecoin cheerleader Musk referred to the meme cryptocurrency to be as real as a real dollar, the DOGE investors seem to think otherwise. Digital Currency Group CEO, Barry Silbert, tweeted that he had started shorting the DOGE on the FTX exchange. In a tweet on May 8th, 2021, he told his followers that the short positions in DOGE are $1 million. 

It should be noted that Digital Currency Group is the parent company of Grayscale, which is the largest Bitcoin holdings in the world at present. Silbert also mentioned in his tweets that the funds collected from the short would be donated to charity after closing. There is a common axiom in the stock market that if a taxi driver tells you to buy a stock, sell out immediately. It could be that unnecessary market exposures have proven to be the undoing of the DOGE. 

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